https://www.taxtmi.com/caselaws?id=208744 The High Court of Karnataka upheld the decision treating the waiver of the loan liability of the assessee as a capital receipt, not a revenue receipt, absolving the assessee from tax liability under Section 41(1) of the Income Tax Act. The Court emphasized the absence of any allowance or deduction claimed for the loan amount in question in previous years, leading to the conclusion that the waiver should be considered a capital receipt. The revenue's appeal was dismissed as no substantial question of law arose, affirming that the waiver did not attract tax liability under Section 41(1). en-us Tue, 18 Oct 2011 00:00:00 +0530 Fri, 27 Jan 2012 11:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208744 The High Court of Karnataka upheld the decision treating the waiver of the loan liability of the assessee as a capital receipt, not a revenue receipt, absolving the assessee from tax liability under Section 41(1) of the Income Tax Act. The Court emphasized the absence of any allowance or deduction claimed for the loan amount in question in previous years, leading to the conclusion that the waiver should be considered a capital receipt. The revenue's appeal was dismissed as no substantial question of law arose, affirming that the waiver did not attract tax liability under Section 41(1). Case-Laws Income Tax Tue, 18 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208744